Shri Subhash Chand, Chandigarh V. ACIT, Chandigarh

MA 65/CHANDI/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7888 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 06-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 28-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: TEJ MOHAN SINGLH
• Section: 80IC

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH , . '.., # $, %& BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND DR. B.R.R. KUMAR, ACCOUNTANT MEMBER M.A. NO. 65/CHD/2019 ( ARISING OUT OF ITA NO. 860/CHD/2018 DECIDED VIDE ORDER 27.11.2018) / ASSESSMENT YEAR : 2014-15 SHRI SUBHASH CHAND SCF 12, SECTOR 26, CHANDIGARH THE ACIT, CIRCLE 5(1), CHANDIGARH ./PAN NO: ABUPC8069N APPELLANT /RESPONDENT /ASSESSEE BY : SH. TEJ MOHAN SINGLH, ADVOCATE ! / REVENUE BY : SH. MANJIT SINGH, CIT DR ' # $ /DATE OF HEARING : 06.08.2019 %&'( $ / DATE OF PRONOUNCEMENT : 06.08.2019 %(/ ORDER PER B.R.R. KUMAR, AM: THE PRESENT MISC. APPLICATION DATED 22.03.2019 ARIS ING OUT OF ITA NO. 860/CHD/2018 HAS BEEN MOVED BY THE ASSESSE E PLEADING THEREIN FOR RECALLING THE ORDER DATED 27.11.2018 OF THE TR IBUNAL. 2. IT WAS POINTED OUT THAT THE IMPUGNED APPEAL RELA TING TO ALLOWANCE OF DEDUCTION U/S 80IC OF THE INCOME TAX ACT, 1961(H EREINAFTER REFERRED TO AS 'ACT') @ 100% OF THE ELIGIBLE PROFITS, ON SUB STANTIAL EXPANSION UNDERTAKEN BY THE ASSESSEE. THAT EARLIER THE ITAT H AD ALLOWED THE M.A. NO. 65-C-2019 IN ITA 860-C-18 SHRI SUBHASH CHAND, CHANDIGARH 2 APPEAL OF THE REVENUE FOLLOWING THE DECISION DATED 20.8.2018 OF THE HON'BLE SUPREME COURT DECIDED IN FAVOUR OF THE REVE NUE IN THE GROUP OF CASES WITH THE LEAD CASE AS CIT VS. M/S CLASSIC BI NDING INDUSTRIES, IN CIVIL APPEAL NO(2) 7208 OF 2018. IT IS FURTHER S UBMITTED BY THE LD. COUNSEL FOR THE ASSESSEE THAT THE ISSUE NOW STANDS COVERED WITH THE RECENT JUDGMENT OF HON'BLE SUPREME COURT PASSED IN CASE OF PR CIT VS. AARHAM SOFTRONICS, WHEREIN, THE ORDER OF CIT(A) V S. CLASSIC BINDING INDUSTRIES IN CIVIL APPEAL NO(S) 7208 OF 2018 DATE D 20.08.2018 WAS REVERSED. IT WAS, THEREFORE, PLEADED THAT THE ORDE R DATED 27.11.2018 BE RECALLED. 3. THE LD. DR DID NOT CONTROVERT THE SAME. 4. WE HAVE GONE THROUGH THE ENTIRE FACTS OF THE CAS E. BOTH THE COUNSELS OF THE PARTIES HAVE POINTED OUT THAT THE ISSUE IN THE IMPUGNED APPEAL IS COVERED BY THE DECISION OF THE HON'BLE APEX COURT IN THE CASE OF PR.CIT, SHIMLA VS. M/S AARHAM SOFTRONICS IN C IVIL APPEAL NO.1784 OF 2019, DATED 20.02.2019, WHEREIN, IT HAS BEEN H ELD THAT EVEN A NEW UNDERTAKING WHICH HAS CLAIMED DEDUCTION OF ITS ELIG IBLE PROFITS @ 100% THEREOF FOR THE FIRST FIVE YEARS IS ENTITLED TO CLA IM DEDUCTION @ 100% OF ITS PROFITS THEREAFTER ON ACCOUNT OF SUBSTANTIAL EX PANSION UNDERTAKEN BY IT. SINCE THE DECISION OF THE APEX COURT IN CLASSI C BINDING (SUPRA) STANDS OVERRULED, THIS IN ITSELF CONSTITUTES A MIST AKE APPARENT FROM RECORD. A BINDING DECISION IS ALWAYS RETROSPECTIVE AND THE DECISION M.A. NO. 65-C-2019 IN ITA 860-C-18 SHRI SUBHASH CHAND, CHANDIGARH 3 OVERRULED WAS NEVER THE LAW OF THE LAND. WHEN A COU RT DECIDES A MATTER IT ONLY INTERPRETS LAW AND APPLIES IT TO THE FACTS OF THE CASE. IF THE INTERPRETATION OF LAW IS FOUND TO BE CONTRARY IN TH E LIGHT OF JUDICIAL PRONOUNCEMENT RENDERED SUBSEQUENTLY, IT DISCLOSES A MISTAKE APPARENT FROM RECORD. HENCE, A MISTAKE APPARENT ON RECORD HA S OCCURRED IN THE ORDER DATED 27.11.2018 OF THIS TRIBUNAL. HENCE, TH IS IS A FIT CASE FOR RECALLING THE SAID COMMON ORDER AND FOR FRESH HEARI NG, WHICH WE HEREBY DO. 5. THE ORDER DATED 27.11.2018 IS ACCORDINGLY RECALL ED, THE APPEAL IS RESTORED AND POSTED FOR HEARING AFRESH FOR TODAY I. E. 06.08.2019. IN THE RESULT, THE MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 06.08.2019. SD/- SD/- . '.., # $, (SANJAY GARG ) ( DR. B.R. R. KUMAR, AM) * / JUDICIAL MEMBER %& / ACCOUNTANT MEMBER DATED : 06.08.2019 ** &+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ' / / CIT 4. ' / ( )/ THE CIT(A) 5. -01 2 , $ 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7# / GUARD FILE M.A. NO. 65-C-2019 IN ITA 860-C-18 SHRI SUBHASH CHAND, CHANDIGARH 4 &+ ' / BY ORDER, 8 ! / ASSISTANT REGISTRAR